Professional paper
Costs analysis of milk production
Josip Haluška
Damir Rimac
Abstract
The paper presents total costs and profitability of milk production with simulation on three-production levels (4000, 5000 and 6000 lit per year). From this it can be seen that costs of production and prices have a direct influence on milk production profitability. If we produce own roughage with the application of a new technology, the result will be increased milk production and significant cost decrease. Due to permanent improvement of milk production, the parity of milk and cattle food is very favourable. The reason for it is in the fact that forage even soybean grits, a part of cattle food, is not more expensive then one litter of milk. Sale values of milk with the premium are equal or even higher in comparison with the EU. Different subsidies and favourable values of milk have positive influence on economic position of the production. But in spite of that, many family farms have low profit primarily because of low production per cow and bad management.
Keywords
milk production; economy; profitability
Hrčak ID:
1956
URI
Publication date:
5.7.2005.
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